Rapido enters unicorn club with $200 mn fundraise led by WestBridge Capital

Bengaluru: Ride-sharing platform Rapido has raised $200 million in its series E funding round led by WestBridge Capital at a valuation of $1.1 billion, the company said in a statement on Thursday. With this fundraise, the company marks its entry into the coveted unicorn club or a startup with a billion-dollar valuation.

The round also saw participation from other new investors including Think Investments and Invus Opportunities and existing investor Nexus Ventures. The new capital will help Rapido expand operations across India and scale its technology platform to enhance service delivery. The company further plans to grow its operations across all categories, including bike-taxis, three-wheelers, and taxicabs.

“With this new infusion of capital, we are eager to explore and expand our offerings…Over the past year, we've experienced significant growth, with our daily rides surging to 2.5 million,” Aravind Sanka, Co-founder of Rapido said.

In April, Mint first reported on WestBridge’s plans to double down on the ride-sharing aggregator.

Also Read: Westbridge Capital likely to double down on Rapido

Rapido last raised $180 million from Swiggy at a valuation of around $830 million in April 2022. Westbridge had invested in Rapido, operated by Roppen Transportation Services Pvt Ltd, as early as 2019 and has participated in rounds in 2021 and 2022.

"In the five years since the initial investment made in Rapido, we've seen... the team transform it into India's leading low-cost mobility platform,” Sumir Chadha, co-founder and managing partner at WestBridge Capital said in the statement. “From dominating bike taxis to making significant strides into 3W autos and cabs, their growth is a testament to their operational rigor and relentless focus on customer and captain satisfaction.”

Founded in 2015 by Pavan Guntupalli, Aravind Sanka and Rishikesh SR, Rapido started as a bike taxi aggregator and later diversified into three-wheeler ride and four-wheeler ride-sharing aggregator in October last year. 

Also Read: Pavan Guntupalli: On a Rapido ride

The company has also expanded its reach beyond metros, establishing a presence in over 100 cities, including tier 2 and 3 cities. Even as the company’s operating revenue tripled to ₹443 crore in FY23, its losses widened to ₹675 crore from ₹439 crore in FY22. It is yet to file its FY24 audited results.